Skip Navigation
Close close

This website uses cookies to ensure you get the best experience on our websites.

LEARN MORE chevron_right

Health Savings Account (HSA)

Simplify Your Healthcare Savings with a Health Savings Account


Enjoy the Best of Both Worlds with a Tax-Advantaged HSA

As medical expenses continue to skyrocket, a Health Savings Account (HSA) can be a great way to not only set aside money for future healthcare expenses, but also invest it so it continues to grow tax free. An HSA is basically a savings account for medical expenses and is often referred to as “the best of both worlds” because contributions are tax deductible like a Traditional IRA and qualified distributions are tax free, like a Roth IRA. Contributions can be made by an employer, employee, or both. 


What are Qualified Expenses for an HSA?

Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. They include the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and include the costs of equipment, supplies, and diagnostic devices needed for these purposes. They are explained in detail in IRS Pub. 502. Some examples of qualified HSA expenses are:

  • Medical, dental, and vision care expenses
  • Prescriptions
  • Ambulance and hospital care
  • X-Rays, ultrasounds, and other medical tests
  • Therapy

Qualifications to Open an HSA

To qualify for an HSA you must meet all of the following conditions:

  • You must be covered by a high deductible health plan.
  • You have no other health coverage except what is permitted under “Other Coverage” on IRS Publication 969.
  • You cannot be enrolled in Medicare.
  • You cannot be claimed as a dependent on anyone’s tax return.

What are the Benefits of an HSA?

  • Contributions are tax deductible
  • Earnings grow tax deferred
  • Qualified distributions for medical expenses are tax free
  • Funds can be used any year
  • At age 65 and older, you can take a distribution for any reason without penalty

Ready to Get Started?

Open a Health Savings Account Today.

Get Started

Frequently Asked Questions

What is the contribution limit for a Health Savings Account?

The IRS sets limits for how much you can contribute to a Health Savings Account. See the current contribution limits.


How do you invest with an HSA?

It’s easy to invest with an HSA in just 3 steps:

o   Open an HSA with Quest.

o   Fund your account by making a contribution.

o   Use the Investment Hub in the Client Portal to self-direct your investment. 

What are the distribution rules for a Health Savings Account?
  • Distributions are tax free when used to pay for qualified medical expenses
  • Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses tax deduction.
  • Expenses incurred before you establish your HSA are not qualified medical expenses
  • Unqualified distributions will be subject to income tax and may be subject to an additional 20% penalty.
What is the difference between an HSA and an IRA?

Health Savings Accounts and Individual Retirement Accounts are both tax advantaged accounts. HSA distributions are designed to help you pay for qualified medical expenses tax free, whereas distributions from an IRA can be used for more general expenses in retirement once you have reached the age 59-1/2.

Can I buy real estate with an HSA?

Buying real estate with an IRA or HSA can be done. You just need to find a custodian that will hold non-traditional or “alternative” investments in self-directed accounts.

How do I use an HSA to buy real estate?

You first need to find a custodian that will hold non-traditional or “alternative” investments and establish an IRA with them. You will then locate the real estate you want to purchase, and typically, your custodian will require you to sign some internal forms. After making sure the contract is in the name of the IRA, your custodian will purchase the property for you on behalf of your IRA.

Schedule a 15-minute call with a certified IRA Specialist

Not sure where to start? We’re here to help. From opening an account to funding your first investment, we are here for you every step of the way.

Schedule a Free Consultation
Back to Top
Close Overlay close
Team Placeholder

Title Goes Here

Firstname Longlastname


Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed dotempor incididunt ut labore et dolore. Lorem ipsum.

Close Overlay close

Login to your account

Client Login

Log into your Client Portal to access all your SDIRA investments and account information. Upload new investments, manage old ones, and prepare for any upcoming deadlines online HERE.

Client Login

Solo 401K Account

Managing your Solo 401k is quick and simple. Click here to access your online dashboard to manage your 401k account and submit your investments.

Solo 401K Account
Back to Top